Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Jyothy Laboratories — Q3 FY2014 Earnings Presentation
25 slides from Jyothy Labs's earnings presentation, Jan 28, 2014
Slide 1: Analyst Call
Analyst Call January 28, 2014
Slide 2: Agenda
Agenda Company Overview Financial Performance: Q3FY14 • Results • Analysis New Business Initiatives • Business Initiatives • Key Initiatives 2
Slide 3: Company Overview
Company Overview
Slide 4: About us
About us Mumbai based FMCG company founded in 1983 by Mr. M. P. Ramachandran Pan India presence catering to consumer needs in various categories Our portfolio includes leading household brands led by the flagship brand Ujala, with 72.5%* market share, Ujala continues its dominance in fabric whitener
Slide 5: Our Network
Our Network Extensive Distribution Network* *Source: Ac Nielsen • Products available in 2.9 mn outlets in India as of March 31, 2013 • Directly reaching 1 million outlets • Strong presence across geographies, Urban and Rural Offering Value-for-Money Products to the Common Man 5
Slide 6: Financial 9M FY14
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Slide 7: Results - Profit & Loss
Results - Profit & Loss Quarter Ended Nine Months Ended Year Ended Particulars 31.12.201 30.09.201 31.12.201 31.12.201 31.12.2012 31-03-13 3 3 2 3 Net Sales 29,699 30,855 23,421 92,519 74,525 1,01,738 Other Income - Operating 44 17 38 157 96 136 Total Income 29,743 30,873 23,459 92,677 74,622 1,01,8
Slide 8: Highlights for Q3 FY2014
Highlights for Q3 FY2014 Sales growth of 27% (22% by volume and 5% by value) Advt. & Sales Promo exp. for the qtr Rs 28 crore increase of 72%.A&P to Sales Ratio 9.3%. Market Shares started showing improvement Gross Margin stands at 47% as compared to 49% in last year same period EBITDA at Rs. 4240 l
Slide 9: Thrust on Regional Brands becoming National
Thrust on Regional Brands becoming National Q3FY2014 Q3FY2013 47% South 47% South 53% Non South 53% Non South 9M FY14 9M FY13 45% South South 50% Non South 50% Non South 55% 9
Slide 10: EBITDA Analysis - Quarterly
EBITDA Analysis - Quarterly EBITDA % • Decrease in EBITDA in current Quarter as 16.0% 15.5% 13.8% 14.3% compared to last year same period is lower Gross 14.0% margins and increase in Advertisement and sales 12.0% promotion expenses in Q3FY14. 10.0% 8.0% Sales Sales EBITDA % Product 6.0% Q2 FY14 Q3 F
Slide 11: EBITDA Movement
EBITDA Movement In % Particulars Q3FY14 vs Q3FY13 Q3FY14 vs Q2FY14 9MFY14 vs 9MFY13 EBITDA % - Previous period 15.5 13.8 12.1 Other Operating Income (0.0) 0.1 (0.0) Gross Margin (1.5) (0.3) 2.6 Employee Cost 2.6 (0.4) 2.0 Advertisement & Sales Promotion (2.4) 0.3 (2.1) Other Expenditure 0.1 0.7 (0.2
Slide 12: Sales Analysis
Sales Analysis Segmentwise Sales Growth Segment wise Sales Contribution Segment Q3FY14 Q3FY13 Growth % Sales - Dec' 13 Soaps & Detergent 24,039 18,722 28% Home Care 5,638 4,478 26% Other Products 394 221 78% Soaps & Detergent Total 30,071 23,421 28% Home Care Other Products Less: Inter Segment Reven
Slide 13: Advertisement & Promotion Expenditure
Advertisement & Promotion Expenditure Particulars Q3 FY14 Q3 FY13 % Increase Advertisement Expenses 1,504 1,201 25% Sales Promotion 1,244 400 211% Total 2,748 1,601 72% % of Sales 9.25% 6.84% Particulars 9M FY14 9M FY13 % Increase Advertisement Expenses 6,454 4,325 49% Sales Promotion 3,122 1,833 70
Slide 14: Cash Profit
Cash Profit In Rs. Lacs Particulars Q3FY14 9MFY14 Revenue 29,699 92,519 EBITDA 4,240 13,368 PAT 2,738 7,695 Depreciation 442 1,276 *Amortisation 1,115 3,344 Cash Profit 4,294 12,314 *Charge of Rs. 4470 lakhs (every year) will be there in financials for next 9 years This will be tax deductible 14
Slide 15: Net Debt Status – December 31, 2013
Net Debt Status – December 31, 2013 Particulars 31/12/13 31/03/13 Term Loan from Banks @ 11.25% - 430 Working Capital – 11.5% from Axis Bank - 62 Short Term Loan from Banks 50 - Commercial Paper @ 10.95% - 25 Commercial Paper (@ 9.3% to 9.5%) - 40 Non Convertible Debenture @ 10.25% 50 50 Non Convert
Slide 16: Market Share – Our Brands
Market Share – Our Brands 80 72 71 73 70 58 60 57 58 50 40 30 20 17 17 19 18 18 18 15 16 16 15 15 14 11 11 10 9 9 9 10 4 4 5 4 5 5 0 Value Volume Value Volume Value Volume Value Volume Value Volume *Source: Ac Nielsen Ujala Fabric Whitener Maxo Coil Maxo Liquid Pril Liquid Exo Bar Q3FY13 Q2FY14 Q3FY
Slide 17: Business Initiatives
Business Initiatives iy dyothy LABORATORIES LIMITED
Slide 18: Marketing Initiatives: Ujala Fabric Whitener
Marketing Initiatives UJALA FABRIC WHITENER New Campaign in Ujala with tag line of “ Safedi Ke Aage Ujala” being well received and the re-launch of Ujala helping brand to grow volumes in the quarter. 18
Slide 19: Marketing Initiatives: Henko
Marketing Initiatives Henko Strong competitive intensity with aggressive promotional pressure through last 12 months. Our plan is to stay on course through a re-worked mix which is under development. New initiatives on brand in Q1 FY15 19
Slide 20: Marketing Initiatives: Margo
Marketing Initiatives Margo Significant Media presence helped strong growth in the last 12 months. Brand extension to adjacent category leveraging Margo equity planned for Q1FY15 20
Slide 21: Marketing Initiatives: Maxo
Marketing Initiatives Maxo MAXO – MOSQUITO LIQUID VAPORISER : Continue aggressive growth path in the category by investing behind brand. MAXO – MOQUITO REPELLANT COIL: Launch of MAXO LOW SMOKE COIL 21
Slide 22: Supply Chain & IT
Supply Chain & IT Supply Chain: IBM tool implementation progress • Demand Planning Tool implemented • Trial run for Production and Despatch planning done. Data validation in progress. • KPI parameters defined. • KPI tracking tool under progress IT : • Time saving and effortless Primary trade scheme
Slide 23: R&D and Manufacturing
R&D Manufacturing: • Strong product innovation in pipeline, focusing short and long term investment. • Manufacturing units consolidation for effective cost reduction and improvement of COGS: • Ujala Fabric Whitener manufacturing units consolidations completed. • Detergent manufacturing units consoli
Slide 24: Key Initiatives
Key Initiatives • Continue Brand Investments PAN India • Gain market shares across all Power Brands • Consolidate Sales & Distribution across India • Grow detergent business and House Hold Insecticide business through breakthrough innovations ? 24
Slide 25: Thank You
Thank You 25
Jyothy Laboratories — Q3 FY2014 Earnings Presentation on 6ix